Top Posters
Since Sunday
12
s
5
t
5
s
5
9
5
g
5
h
5
l
5
o
5
f
5
d
5
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
LiChan LiChan
wrote...
Go to Answer
Posts: 558
Rep: 0 0
6 years ago
The following standard cost information was provided for Davis Manufacturing:
   Standard direct labor rate   $21.00 per hour
   Standard direct labor efficiency   5 hours per unit
In October, Davis Manufacturing completed 7,000 units of product using 34,250 direct labor hours at an actual cost of $736,375.

REQUIRED:
1.)   How much did the company pay per hour for the 34,250 actual direct labor hours?
2.)   Determine the direct labor rate variance.
3.)   How many hours of direct labor should it have taken to produce the 7,000 units?
4.)   Determine the direct labor efficiency variance in hours.
5.)   Determine the direct labor efficiency variance in dollars.
Textbook 
Survey of Accounting: Making Sense of Business

Survey of Accounting: Making Sense of Business


Edition: 1st
Author:
Read 83 times
2 Replies
Replies
Answer verified by a subject expert
hol23hol23
wrote...
#1
Posts: 373
Rep: 0 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
  1.)   The company paid $21.50 per hour. ($736,375 / 34,250)
2.)   $17,125 unfavorable.   Actual rate   $21.50
   Standard rate   21.00
   Difference    .50 x 34,250 actual hours.
3.)   The company should have used 35,000 direct labor hours. (7,000 units × 5 hours per unit.)
4.)   750 favorable.   (34,250 actual - 35,000 standard.)
5.)   $15,750 favorable   (750 hours × $21.00)
1

Related Topics

LiChan Author
wrote...
#2
6 years ago
How do you know this stuff so well, wish I was as smart
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  304 People Browsing
 230 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 233
  
 161
  
 129
Your Opinion
Which country would you like to visit for its food?
Votes: 129
Previous poll results: What's your favorite math subject?